RBA Left Cash Rate Unchanged at 1.5%

News Event

From Trading Economics: The Reserve Bank of Australia left the cash rate unchanged at a record low of 1.5 percent during the meeting held on September 6th, as expected. While saying that low-interest rates have been supporting domestic demand, policymakers judged inflation would remain quite low for some time. Interest Rate in Australia averaged 4.84 percent from 1990 until 2016, reaching an all-time high of 17.50 percent in January of 1990 and a record low of 1.50 percent in August of 2016. Interest Rate in Australia is reported by the Reserve Bank of Australia.

Market Snap



Market Closing Wrap

In European Equity Markets, stocks made minor gains on Monday as a rise in the shares of fund management companies in the wake of a large merger in the sector propped up markets. The pan-European STOXX 600 index ended up 0.1 percent. Britain's FTSE 100 rose 1.2 percent to a 16-month high, helped by a fall in sterling, as a weaker pound typically benefits the FTSE's export-driven, internationally focused companies.  Shares in fund management companies rose after Britain's Henderson Global Investors agreed to an all-share $6 billion merger with Janus Capital. Henderson shares rose 16.7 percent, while rivals such as Aberdeen Asset Management, Jupiter and Schroders rose 5 percent, 6 percent and 2.7 percent respectively.

In Currency Markets, sterling fell on Monday near a 31-year low against the dollar and to a three-year low versus the euro after a March deadline was set for the start of the formal process that will split Britain from the European Union. It fell more than 1 percent against the dollar to as low as $1.2818. Sterling also shed 0.8 percent against the euro at 87.28 pence after it hit 87.48 pence, its weakest since August 2013. The euro fell 0.23 percent to $1.1213. The dollar rose 0.23 percent against the yen to 101.57 yen. The dollar index was up 0.3 percent at 95.747 after the Institute for Supply Management said its barometer of U.S. factory activity rose to 51.5 in September, above the 49.4 in August

In Commodities Markets oil prices drifted on Monday after Brent crude hit $50 a barrel and U.S. crude reached three-month highs as traders weighed weaker stock markets and a strong dollar against OPEC's first planned output cut in eight years. Brent rose 0.2 percent, to $50.28 a barrel, retreating from a six-week high of $50.90. U.S. West Texas Intermediate crude was unchanged at $48.24. It earlier hit $48.87, its highest since July 5. Spot gold reversed earlier gains to trade down 0.37 percent at $1,310.90 an ounce. Silver fell more than 1 percent to $18.93 an ounce, platinum fell nearly 2 percent to $1,003.50, and palladium was down more than 2 percent at $709.50.

In US Equity Markets  stocks started the fourth quarter on a weak note as healthcare stocks fell and Deutsche Bank's travails weighed on financials. The Dow Jones Industrial Average  was down 0.29 percent, at 18,255.73. The S&P 500 was down 0.28 percent, at 2,162.24 and the Nasdaq Composite  was down 0.15 percent, at 5,303.94. The S&P 500 healthcare sector was down 0.5 percent and was the biggest drag on the benchmark index, followed by financials, which fell 0.23 percent. Tesla shares  rose 4.4 percent after the electric carmaker said third-quarter deliveries rose by 70 percent to 24,500 cars. Cabela's rose 14.6 percent after the company said it would be acquired by Bass Pro Shops in a deal valued at about $5.5 billion.

In Bond Markets U.S. Treasury yields rose on Monday after stronger-than-expected manufacturing data for September boosted expectations of economic growth before Friday's highly anticipated jobs report. Benchmark 10-year notes were last down 5/32 in price in price to yield 1.62 percent, up from 1.61 percent late on Friday. Treasury prices had rallied since the Fed left rates unchanged at its meeting concluding on Sept. 21, but signalled that it could still tighten monetary policy by the end of the year.

Source: Institute of Trading and Portfolio Management